Dell's Working Capital Circumstance

5. Dell Need to continue really growth for the next year of 1997 simply by around the same growth of mil novecentos e noventa e seis since it increase by 52% in that yr while the market grow by simply 31% as well as the industry will grow by 20% in 1997 although Dell is going to grow simply by 50%. 5. Dell must come with a want to finance its growth intended for the year of 1997 Likely solution:

* Dell can use external pay for to financial their development taking mortgage from financial institutions.

* The advantage of that solution is that they can deliver dividends for its investors.

Some possible costs:

* The price here is the firm will be responsible which is not great for their ideas because that they always avoid need exterior financing.

Recommendation:

* Dell should finance their growth internally since they have a whole lot of retained earnings. 5. The exterior financing will probably be high cost thus i don't guide that choice.